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[Cites 12, Cited by 6]

Karnataka High Court

The Commissioner Of Customs vs M/S Motorola India Limited on 21 April, 2011

Bench: N.Kumar, H.S.Kempanna

 

.  ANQ 

IN '1' EB HIGH COURT QF KARNATAKA AT 

£}A'.I"EI) THIS Ti»-115:: 21% DAY 01? AI3I{Iii},:"2Q§ 1"   

PRES HIKE"? »

THE I-IONBLE my JUS:-.:jIt:;¥:. N,K?."§:E;£A1§  

W

THE HoN*B1.E ~MR..1Jii'$i'~i{;.r;:"HTs.K3£<:§m=ANNA

BETWEEN  

THE coMM';$s1<3hr_Ere"'Q¥*-CUS'r@Ex?1s
C.R.1E3UILDING.S,_.__ -  _ '
QUEENS' Ro,AD,. "

BANGALQRZBZ --'   M

  '~(33Y sRf.135PRAM0D --

  'Ix«,:_/SA  INDIA Lmm:1:>
*N(_1K88~A,."E1,£§C'1'ROE\E1C8 cm:

%9EQSUR.. R_Q;m:t>.
13AN<mLoRI5 .

' PR."{ESEN1?TLY AT:
 M;f_s,MO'r0Iz0:,A INIDEA PVT; ::I'D.,
« '_ 4: 5x23 ;a*«I1;z«iRAU'L: GURGAON? irzamsz
  'rSIa:;s;:":{fc:§z 14..
  ' <71:-URGAQN M £22 om, ..

..Q"S-iI*'A   " "

n APPELLANT

ADV. )

. E{E§SPO§'€§}E$E\'J'E'





[EBY SRE.K.S.RA\fISH,AI'€KA.R -- ADV.)

*2';-£13 CS'1'A FILED U/S, I30 014* THE sf;i'ijs'f:éf,:;:~§:isi--.,;%;C'::

1962 PRAYING TO SET AS11313 THE; fj'INAE§., F" T<)P::3;:P._,
NO'88.i./2006 DATED 12-052006 P_As»3.£:gI:;  __THl,':Z
CUSTO'i.\/{S5 EXCISE 3: SERVECE f:'A:~§:---AI>{»#E1',m'1?:_ 'ifR§E3U]"€AL 
seam ZONAL BENCH" AT B;xNGA:,0;z>:?§;iv \/'R313.ANN:«;xU':§1;r£3' 

AN!) ETC' ..

THIS cam comma' ._z'«*oR ' §«fz}:~::'A.1}"v_:1é:'::;2$:'z1p~;%'G mtg
my. NZKUMAR J., 1>1:%:L1v1aR1::,:}V::f1>-1:5,' 1<"01;;,Qw'1NG.;

   U 
Thig a.ppc<'21i is h3:~.i;_If1Fe E?7:¢*.5¢r"_;2..=;<:: ¢V§i1'a1le11gi:1g the order

paszgcfi by théi; C§_;'ES'1';3T" h<iEdi11g,{ha1i i}'iéVa1ssessee is-3 Ciltiflfid to

the 'Scjiicifine _in-- iéfrlls of Notification No.30/97~
CLES dazteci' 'E   para 7.4, oI'I;h.e EXIIVI policy

l997e2OO2""21Ar;Vd  sAi1.<:IV'«1" he is not liable to pay any Custom

 %. 21'; a.s$<~:sse<3 is 21 ieadiilg m21m,:fa£:t1::*e1* of pagers.

A S§:C1<';'.Ci'i:'if.T ';:it4eIIige11r:te received by the Déractoraue of Revenue:

.. §£":.?5.f?",;i§§.§(§fZi(T€ to 'aha fzffeci that the resp«:>nd<mi. had stepped.

 ":;i3;;2i;i.fl21c'fs.:a1_"E:3g cf ;33.g,;t*:"ss and h€3§'.1C€;', 2: <:€3r§';212?n p<3n.i0:: af éfhéis

s

 W

3
E



C152

{}1.2§:j;~fr{3e3. materizzé iz1'z§3c)r?.ed ¥.iI'Ed€i' 1'f}}E:3EZC Sifhfillifi _.{wjii1;'§£tfa:21§

U391' Cezadition} had 'b<:en wr§i.1',en. off in their b<)o§{é'0f'2;z{:gfL>f.a§_:i':,s.

As {ha goods i:1'1p(::*';<:d u:1der Actuai {jser.V_C'{:.:1diijj:3fi' :~2h0i,;1d"--V

0:11}; be used for ;11a.1i1L.1i".21c1u:'i1.1.g" of  d£:<:Ie2';'1'eci .§'iT1'1-:3] §§I"GIA:'I:~L1€3'E' aséf

:10 mere mam,1§'21s::{.m'"i11g is bei1'1g (;f<'}}i'if.:,*..'_'   
took up fu..r':he:* ilwegtigatioxa'::1*1--..1.E1e fim'is;r.:.  
Called upon to Submit. the list  l,3;'.1.1§LI§,:V'fl1"é€C1 fi€1'k'lES which
are imported Lmder CufistgrrxS_."N}jt'iiTiE_§21i:io-gr; No.30'/9 'V7--CLJS daled
1.

42.199? and iying 'E,'iI'1' L'1'{i1.'§@€'C'i"'~.'i:i'i;; théL"v:§f1a;§é'q.fz1ct::r€ 01' pagers. The? assessee: s}_1§j;1jii.te;:% at .é)f« ;s:.,;ch' t;.:,1'u£1'1.ised i;tem$ along with d 'e11ai*ls of -.1§a::t4'£;.gfi'13ber, their q_'L1a'ntity and their vaiue and s0ugh1;'__f'cJrj fii:"1'.1ier"'t'ifi;1Ve to kink: Lmuliliseci iiienas to the bill oi"e:;1ir'y.;1::d E;i";.#.t__fV<é'}texr21'e1f. zxssasasable vaimz. On 23.5.2001. they complete list af 2111 um1.t1'1ised it<3r11s t0t:a£Ey i.cie{'1_1é.ii1'e3r.i"--«.g;i: .é§:1';'érja:ar1 cioiiars, The 21sS€;*.$$¢3€ also sL1'b:11.ii.f;ed {ha}, fi'I€'.~y _h'.:iVc €?€faSf-3d mam":i'ac:1;,ur.i.ng pagers and the said n121tm*'i2i1s§;.ha.x»'€, bézcoilae {:bs01ei;s: as; far as they are <:{}r1ce1"neC1. 4 :3. Afimf £333 e1.1q'm€ry :5: =51-*s}i1€)'»V~{?EiL1.Sf3 :n.0i,12c£: W213 issautzfi in ths assesssez-3 'reqmiring,§ th(:.n1 110 sshc>w~c.:e-mssc-2 _' why cus'L0'r11s dlliy ;m10r.:1'1'i'.iI1g to R:~;.98,'i7;498/- demanded {rem 'ifnern. in '£;err:1$ GE' {he 1'1(3Tfiif7i(.:Ei.f€€"}.E'} "NO';3Q;{ 9?:

Cami, di. .§..4.9?; Why the .:'-mid iI}'1;)(¥i7}L€;',CijI7?§.'}";' 1§:;1{.e:9i21ES'=i:i+;de.:f' {he "
noti£ic:a1ii0n and not 'utiiised,i11- the said :10-tif:'_ca*a.i0n shouid not b€;;'V'VL€E<v3:{1'1°is3Vc%23.t,¢;2'i:i:. i£h}€YE3'[ at the rate of 24% pa. an der1Vv1'§i'r1;ied and also why penalty shauid not «ll. _.AT;{té'r ,_ d'etai1cE1...__ enfquiry the Commissioner of Cust0n1.S' .._c a'm€' '*1'r;¢"'*c§54:i§::i:.1si0n that ihe crustoms cluty a11101g'n*'ting {£3'vRf$L'3'6_1. '7,4;98/~" is de1"I1ar1dab1E: along with the «'V"ini§é§'és£"-"SnuiZ45'%> p.a1'.r§«)n the duty in terms of n0'tifica.tio1'1 dated A-..1 /1;;E9'E3T?'».fi*:;r:i~.1.T%1.e assesssee and. the n1a.tr2r:aI.s §mp01"F;:=:d dmy fE'<~:>€;..4__a:1cE.~ufirhiaéiz are not: Lxtflised 31:13 Eiabie for confi3ca'éi0n and VV'~»c@'I1se§§u§3}1.E;Iy, heid that the asscassescz is aisae liable:-3 10 pay " ;3e§1a:§.-;.yy A2': <};:'d<:r in Q:°:igina.i Céiffié 30 be passsad an 38452002. x Ag;_;ig:"i€:v:%d£ by the Said orciegx the assess:-see p.2°efer;°e£i am zigpeai % §§// a /,..
before the CEiS'l'A'%"1 Tfze 'E':'i'bu'i'12'i§ af'£',e1' e21:*e'§"u1 eQ.fi_:=sir;iVe':?fé>;£.i{;:ij: of the ma*:.eria1 on "record held 'a.11ai, the &55S€:SS€-36'}?§iSv1f1Q'E:tI3i\?(:1§1.€fi'-.V the imporéed z1"1a1ee1'ia.1. 01" 50101 t'%1e1:i}" 1'r2.i};1'eL .;1Ei I,heVznateriailsi'. iinperted were pm: te 1186'. HeVveVe'.:',__ 'fe.e'{?..s'3v'.,:een12r.i:ieTi:1e.be"i~3:1 respect of eertaejin {Z3C§1'IE§)OI1€1'1€8;~§.i'1fEb 3' 'VVsL'i'1'1s;e{)ri;. 2% in exeese of Lheir aetvzsaii reqgi: p1;e\>i~:§!e-'i'0r wastage. There is no eo111pL1I.s.io;1 Eéie:e'§1:1d--}1ecese2u'i1y be 2% wastage. in aeé rvzivaixrfiuaterials ihe wgisiage may be fees; the excess material 0bvi.0u_s.1I.Vvee5.'%id;:'--§3:§)Vi_ ";:.:/EA1e_.e1a11L1{ae'€.ure 01' the pagers. feaiistieally. Just because some fZ[11,&1}T}.UJ[,if3SVV5" ,r_3u*;.'C0I'}£}i'¥_éf1VeIi{.§"_F;&'e£'€ in excess and became obselete, 0':1e,eat13:0i. e0f1'1e.i.0 the eomelusioll that the above e011d1't'i0n of .EE':«e I\§Qf'ifi.€;3,fi£e11 has been violated, The authoriiiee must be ".:es2Q;1.fre"é3§ '_t3t1_e'~fa.e*:, mat. in the }a3£eei',1'eni(.: and Con'1mur1ieat.ior1 iInd3;:s1.:*§,): there is rapid a(ZiV2i1"1C€3f}"1€'I}.'i and obsolescence is very A e0'r:1p0:1ent in few moruhe' time may be renciered "'f§'é3ss€;E:eE.e. FE will have me mrihez" M:-Be aé. 2:3, in Such a, ehz2.':";g;£ng' ~-:e~--,:{:ee2e*i:} of Ee::h:'1eIeg_.§;, there are {,'.('}E}"£p1;i1Si{}11S ée wme eff K"

Cez'1:.aiI1 c<3n":p€.m€§:1{.£s w§'i§<?E'°z }m'v:;*: b€,€'3I"1 i§1'1pm"é.ed. Vie-%Wé::E§~:1 this angits, it Canxmii be said there is cie1ib€2'ai',c: V';0'}21€;f1@:1L' VéG{4£.h.e co.:1di'ti<3n. of the N0t.ificaii0n, in the <:ir<%:zn1s~3t:a7;.1_c:es'Tffisie VE'héSe:V; \-'Vhf:1'} the €Xp(;»1't ob.1igdi,i.<m is Cf(}I"§1.p}€i.€1y £'L:s'I£311v<:':i:T. Lthe a,$;seE';5€:e L. should be d.een"I€:d {:0 have been i'{::%;i'111%_%._d'~ 11o'éi.fi_cati0n. The case weL1Id.'m:_ diffe':*€:n i, if the"'g1p.p_cIia_§§ztSMhad. not fuifilled the export' 0b1.igatic§E1..§§.V;A' +I:h€' I'1°ibL1H&11 set:

aside the order pasasedv i';1.V.orig¢i:'1':ii";§_f;dx'éet a.sic«1'é"'t:E':EjVVc1e:11anci, It also 536:: aside the <:0:1s;é'q:a«'er;t'£a_1 »A1§<:»:1a.1ty. Aggrieved by the said order'. the Reve:;:me i:s iiI'2;pp§:;ii_, __ .TVh'1 .7T4.V:?a._gjpeaE~_i§.._prr3fs:1'red u/53.1.30 of the Customs Act, for 5'-;?;1LC>:1"£: he.:#ei.i1:i'fLéf'*----:f'é1'E1':"ed to as "the Act". The appeal was gzidmittefil "::~1':;V V2V(}.6;fi3?.QO'? 'L0 C0i}Sid{:Z'I' E116 {h1*(--:6 substallfiai g.1:1&é7SiE<>i":$ r.>_f'§.2;vv as Se': OL11. in. the order s_~s.}1e3eL V§i??':.éIfI1.er "wrz'z:'1'ng qff" iziw imported I)x.uf'y;j}"ee ' .__4'}na:j£3r€C:}§a;}b:?71 the Books Qf Accoums Q)" the importer is ";;g3:"?m;'sS:f3Ee in Saw ansé u;:?2,e€:?2.e:" {he .s;ame-3 ar7rze3z,:m.s :0 A .«__4"Ciivsj{;0se3 Qf" wiifzirt {he m:=2ar12Tng of Cuszoms 'iii Ncrmficcaiion f\I&:3€}X:'~}?'--Ci,:s dafzecf .£~4«}§E§'?'fl.AJ which the goods] maierials are :'mpo2~!"ed. T9'
2. Whether, wiihoui p(g.yihg"« .i.?1{.' §3erz<:r1i.ssxbZ(3 for an importer Zlisi) "'.:_i:1'z'1§'e ?2;;{}"" ._?3"c:f%2 : {f1'3-"EC; 7 Books of .A.::?cou 111,3 the ,E3:,4z_._I:'g~_]'zr*<V;»"e;.=_ V z'.é*n_z:>or2':<:<f 'j'fi{;§i.eri;T;l5': VA when he vz'olai.es i.}ze""vL«?»2f:€'c3rrrzs :;ff '*;%\_}:I:£é:Z Hfjser Condii:'ion"'. "export. obiigaifirtf' °and t'fi'e-.;9rGF'§1:bitio:1 "moi: to dispose uI,ilA:'_ze;i:r1'. {r;2;:1y. in4:1_bbr1ner excepz for zuiiization in discharge :éxpof"i"--f)b_Zig;atior1 or jbr repEeI1ishnLé n,{~'_' -LV£AI"'"£<£i"tf.'~--?fVVC:'l£::3*??§('V)T7Ef$ fVOiL§'fI'.CClZ'i0I1 Nc;.30./.9:';?fc:f;§pzarécz "r-1§;9ii;*. :3 H t.fi e~..'_.¢o:gfi<;éfz:ior1 of goods by the De:§§pa1i:tr1e;7,tVV:zTfiz:¥_¢r .1 11(0) qf the Cusiroms Act.

I962;'<§)I*i .§'ge4ifllpOTf,€f to _pag {he Duty etc. ;cun,seq1£ér11_A 'on: h z"s if/Ezilure to comply wail aii the ."E:oz_1--:iii1io{1s Q.f "'fii't'€"Cl1SZ.O?77S No{§ficai"i0n No.30/9'i"--C'us ..dr;:I_:¢d «_?j ?'4«..Z997 iiotrally absolves the irnporter _f'mm ;3cig.;§i'1.£3I'11;E§;"'f}LLz';y. ;:}enaZ(:y and inieresi f?"

6'.: " 'Tadalyf when the Case is {alien up for finai hearing ~.,VE'i'1;?~..E€&12:§1{;?€i mu;I1s:i§ £131' ifhe: asgézésgee raiged 3. prelimérzary '"ab'jé:{:ii011. He c:{>:1t@:1dc<i ¥;:hai.$ as 31%: erciez" passed by the Appellate '£'r1'bu.n21i, which is; i:r1'1pug;§I1.e£§ in '{E1§.s:._;?:;g.:%p'e=21*i,fie an order 3*eia"£,.i.n.g; au1011g (){,h(:'H" !.eh1'.:1gss%, £0 i:he"'~.}ja%ef_e'V.r}}f C§L'1T,Kyb{;3~f. euetenls fer {he pm"p0:-se ofasse§.'é;ifiei%1:.¢_S--eet.ier1_"13QVtisifihve A.ei:__ i8 not a't'i,ra.ci,ed and tfleretere, i}:.i:e'_a:;>_pea11 :s_»,n;5:,- :':1a11x1iaih.-able before the High Court,
7. Per cor1E.reI"§ appearing for the zlppellanixRe§re.1f§L:e_ is no dis_pu'{e §'egarding€.:'2ei'e..__Qf;i.g;--ty goods or the value of goods.Er11p'di'i'.ed::*3:he 15% whether the assessee is entitied nit» file I'lOf§fiC,f:HL]'()I'1 N030/97 dated 1.43 1539"7V"'-i.»?'§!_/f'I'l.l?';"1 ¥1:t_:1.44eoI11p.1ied with the 'terms of the Said nQi;_5fiea'Lion ai':dV--.ihe lieengting <:0'nd1'.1ei0n:-3 '£10 be eligible to get' the ,' 'e}:en:p»€ib;1, fIt0111 payment of duty Therefore, he contends; that i:11iff)1€g§r;ec§;.'<5rde1' do not have any ;:e}aI'ior1 to file £"€if{,€ 91' duty c::f"'s::L:&;--?Lor:'1.'~:1;'V or to {he value ef goeds for {Sue purposes of A35':-E§essV:nen{. and we appeal filed before the fliggh Cour: is ,rf1&i.sii4aine1b§e u.:1cie:* Seaitéém I30 ef the Act.
8. From 'U716 a§.'<m%said §z~1<r'::-es and 'the z*iva;§_{:s):§:t-séif1i.i::";:"::~3, what' en'1e1'ge$ is E1131... the dispute is with Iééféi'.-:::r:g:é i.0. th.é:
eIigib1'i.1T1y «::.f the z«:5ssesse.»:: {:9 C}z1.i.ti1"'«<3:~:€mp_ii<;{1i' '._:1.11'e:1£3r:" "qhef 2§.f0:*es21id r1.0i,.ii'ication and '."?.1T1v£?i,}1l31;"' 'f'?)E' }{#)1}w{éf§§?%;i§31»§E1'I1Cfs%.'OE;'ELHVE 'ierms of 'me notfiicziixioil A§.iV{:c*_1}.€3ing:'v_: e§E>%€§:Tiij:t$:'I1s 'ifité assessee renamed hir11,s§:1f e3}< éfi1;)1i01; under me I10iifiCE1E.iOF1w Whether {he phrase 'de3;e1'minat.i0:1 cg1 'a._ny ta the rate of éuiy af cufit-c:=:£nus_3 :,{g1ELé.e :?[J i for the purposes of assessr;1_e:1f:1;:?"=._ " 1' 9» ':11£a;ii'niair1abiiity of the appeal is decided 01716. $.11--*ay'~3z* me 'mher, the questicm. of going ,in1;c» the merits of .fl"1:e.,appéa.': s:¥;§£:~s not arise. Therefore, the preiim:inary point that "a:'i'sr:_ib'Vf' c£§';1_sis:i.éi'21ti<)Ia in this appeal is as LE.11d€E'Z "'w?:«.eI;EI.£3r Iiihe appeal pre;f]'eI'r€d by the Revemze AA againsf: the z'mpz,:gr1ed order is zrzairtiainabie zz/5;. 2.30 53;' {.3153 ACE, irzejore E5153 I--{igh Co:.:.r£:'".

iii»/' EC' 1.8. in axis}: "E0 app:°€:€iaE..e ihis COf3Vfi.€f11":.i{V}i1"V'~ i"i: his .nece::ssary {.0 109}; inio {he appeal pr0vi.si<3n:=s fig <::Q1=1£:é1,£n€c%f m Seciizm 1.30 as wen as Sec:';;i::>;;1. 130E561" 'i.h;:»:-:'--.Acf;.«w%ii«r:._E"1V 1'-'e:;ézds".as 7. under :--

130. Appeal to High Courfi "H An appeal shah' lje to .1:'E*1c*A.§jfIig.h:'_Co1,;1f{'fr'oI1:iV'every order passed in appeal by the _é{:X,1:)13é1 1Ei{§.€:. 'ff1VE):L1'§ia1_on er after me la.

day of Juiy, 2OQ_3 {notAA.b.e ing a,mo11g other things, to the;«L1Gij.;¢j*n1ir§:atiQr::~bf having a refiation to the rat(: «€::ti_jétVon1's5_ 1.9' the valtle of goods for ptargjosegof Court: is satisfied that the Case 1'1":s__;\vf<31\T/v'c',>_AS"a;js1..1}9;§§t:émfivia}'_ g:zegtgn of Iaw. 1 30E xippleal to An appeaI'V';3haEiv hté Iii 'éihe. :SfE,'1}'31"€1116 Court. from~ (21) a:f13,..jQdgI1u1enA£V:Gfthf lfigh Court. d€1iV€E"€3CL "i'i)° 2/_ -¢in~.;;n ap;§é"a"E3'11ade under section 130; G1' ' , "{i.1Z} -- _ fa3nv_éL..r<31E:re11c:e made under $ecf.ion E30 by the '.£"r:£bunaI before the IS' ciay ofJL1%y. 2003; {iii} _>c>1_1 fa AZ'(-31"€.1'€I"1.C{*? made under Sf3CUOI".I 130A, in a;1"1y~ Case which, 011 its own ;1m{.i.c>:<2. or 0;} an Grail app§icaE,i0n ~.,'z'1':2's;:_%¢ by 01' an beh21§§0f1.he parixy zig;s_._{1'iev@{i. ;'.m:3:1edia1u:~:iy" aiier , ,WV.,.,,......".,m.,....M',.wmMw/warm/w:.¢.w"m¢ wmw.mmmwmmmwm.wt2gox¢¢\>.z>26j 12 G? geods for Ehe gfmrposéz 0£'21ss;s";ess:'11e1T1i:,¥ in both the £brun'1s, fixp:*ess.1y the s1'.a'1.ui;eH K ju1'isdiC:f:i0n of {he I--Izigh Court ir:'Jéi§3'p'€ea1;_ H Véii' L CL1s1.c:ms Act .1962 arhmi exc{Iz.:si\,.>é'iL.{}é.$Eii<:*:.j}§;f;:.is <*0:§%:e3.i:~g;V;¢%:i--.Ve3zz the SLIp1"€iI1'1€ Cam": in £A%I]1pi0:§\§€€§ in these two sectiozjsgfead c}c;éi1*"-a;1't% i.hs:~re is no scope F01" any doubt

11., j_. of the section stands, it is oJr1.Iy_Vi_z'i"' of Cases the jurisdiction of the * :Th:ey are :m . _1} Wf';£:feVZiie fiisécéé sn1er1i:' relates to the determinarmn. Qf I iljze ratié Q,ff..r:iut'y.' _ 'Z}..¢V.Y1'i€A.q:';3s£11011 relates to ighe deferminaIior1 cg/'me value Qf V ' 5-?j:.:»2 gobds.

Any question '1*e1a1T.i.ng ta or in relaition to thesse two aspects aldrigt, the High Co::z"i1 has no §m'isd§{:t:.i{>n and in 1"'('3S§}€Ci'. 0!"

C;t.h€;f things it I133 jL.1risdiCi',ion. L//"' _ u,...m«.. mm»:
13

12. In erdea' to appreciate this center1f,:.irJr:_,» .':s,if.é'e"V;*}';V;é1x:,.je to carefully see the wordings empioyecl by t;.1f;e""

relevant words are as under: ~« "Not being an order reiettiftg, ehzoeg Qr%:r%;§f :§::Zmg$,..3to % the determination of cs;r§Li§e'e»':;:};r;estionVhe,z§irq;§ 0. 'felatéon tea the rate of ofeer to 'the Uciiue of goods 'for the p:£2:r;eseee_Qj'fi The fife is "for the purpose of assessmeief".-::_fi}eeis1eee;~é" referred to therein is an 0rder;V:VV;'3'a';eeec1.:\/Q1 of eeeessment. Therefore, all orders §aseeei'ie the invoiving the determination of any queéeiiqh hé;vi1ig eeiation to the rate of duty of customs '~ _ 'Greg va.17_1e 'ge6<':'£Vs§ carmet be the subject matter cf appeal Court. By the use of the Word 'among other rgzade clear, ever: order which may not be directly reieeterjjte fee rate of duty or the Vaiue of goede, however which 'X: ';§,tene1ing§ed with these matters are aise exeiuded. in ether . I" éeerdjs these are net the eniy erclere e-entempiaied by the :2,» _r=u!§§iw.
Z4 Iegislatie-my in ordtar to understand the width asziéthe orders Covered unéar these Wards, ii: is r1e;§¢5sSary--.:'§0 k11§W* meaning of "as::~;essme:r1t"'.
WHAT IS ASSESSMENT?

13. The wore: ..__'"a5S€'SSni.ép'f"'»is fiééd as meaning semetimes the comp1¥fé;i.i5~z1 Sometimes the asSe$sab1e V%1L1%V wheha preceduzre Iaié dawn; duty liability upon the eXp0r?;t:r----9r asséessment is, thus, capable of bear'i1:ig' 3* in the context, it can comprehend the a.zh($§.€ A'.ph:n§:~éc1ure for ascertaining and imposing» '1§abi1iiy;--~ . """ M .

'P§é:€:'..§ri{{3:"?CGuncii in the case of EGMIWSSIGNER T' = . ""éF_ magma ..2"A3%¥$Vs- I{IIEMCHz1NB RAM3DA$ has observed " " zzfider j :« " "fine 0f the pecuizlarifieg cf m{>s'f fncarzfze;-tax K z§'s.E":€s 'is tfmt fhe warfi 'asséessmgzzlt' ;:s:ed".as ' meeming s<}meiim.es file c>ompuz'.ai.fon. Qf "

someirimes; the dei,ermin.az.'ion of the an'2o:'ifi'£. Qf payable and semez.'.z'.mes ih(:_I.L?.f1.Q.le pf*(§ee'dz:{fe down. in the Ad. for irI1p()s:§n.g :lic§biZfi--;g hi .' f,c:zxpayer. The Indian Ir1e0_rr'z:e'.a_fa;< " if-E ' rza «' exception in {ms h V '
15. In HIRJIBHAI TRI$Imv4NDAs..p§ INCOME TAX OFFICER RAJNANDGAOEY AND 958 33 ITR 448] it was held as 'unr_ie:":~ _
-------- ._"'"1'rj1 tfie::nGr'2--n:::1.seriseevflio assess" means ":20 '._Z'h€' VCI":':'I11LL"I5£'VT'i'i' 'due or to determine such a:fi9_L:'11:j". E31' reassessment. is to the _san1e"";o11fp0jSg--'3 a::.d'*~;}}o:;ld. thus be included in the » cei'::1oIaZ{0'r'1--VQvfifhgg Iierrn "assessment. "

words levy, assessmerzfg and colleefiion .,,Z. LJé3 §£Iflei€I'SfCZ£nd them. include all the processes "' byA the Ijcvc is €15C8F"E'CI,iT?£3d._ demanded and re'f:;ZiSe;:i and "rewassessmem':"' being one of those pmeess comes w£!hz'r2 Ihe ambii. Q,' izhe phraseology ' em;:>Eo_z;ed. "

Ii wfii be observed ifzaz', secimn 34 Q)" the §nemne--i.0o< Ac: <:om'er72pZa!:'es'f'eur dg'/[}'3ez'ez'zf. cases in '. .
/-
3./' E,Uf'if{f'f'2 {he p<)wei' E0 assess; egcapeci incczrzne figs been given. 'Where i:'h.er(3 has been no» cL<:sess:21§:::"'i'[._ at alla {he ILe2m1 "ass<3ssme2:1I" would be "

and where there was an asseassment. ai, rate or mm': LmJ'u5;i'§]ied e,s:ern_p1'.ViQr1s, iii?) ":ié:r_r:T1 """r¢';_ as;<;ess:ner1Z" zmuicf be €ZZ]Z}_}Y}}f{C)[)3'"Z:_€_I,'Z:.'(3'.::. }":'i:' E,§I.?";':»!;.,.*'f':'?.H necessary {.0 re3s0r£" to t':'he use Z'41:L'£}.(Z1§[~f'~(3.f§tT'TAli ':e=i~'nn1::: ' to cover with clarity Ihé.§i:£f¢rerii"cqse>.$1ded£f"'wi{fi in that' section. This does 'hag' mgan ii"u:1tT t'he iiarms shouid be £reaI'ecin1u_«I'f1aliy- é:rcguZi2;.3.ive. In iz2i*e:preIfh§r_T_' '£;Ii¢;*, .:3I:e:;>V'rm_ rn.erz.i:" as used in fie:-.<'i:'ior1 1.?" ficztéats Act, it s?w--u?cj. .é=:z2 g'ii;=;cr1 {is plain) m<:ah,ing. It should not be i:,r1dc;n"--3toVo--tZwizfi"a1ig; fe3Lricted or speciai sense in u)h.'C?i' if I?16'«.%J'h.,a::é"?£1¢é3Ii'"L1secl in the Indian Income« Lax ALcE:'::. in" CL p;1r*iic_Lzl'C~;f" context'; '~s:;'>;;1®..1fff%1ri<:i§3!?i;:«.§:§§§;2$'8§EC§§'i}.fiTb&H%s%E%49J}1B%C8°P4§ 9&5

7._1,I£'§"1€§<iI""{',§}€§- 111001116 Tax ACE, has Eleslid as umier: ~ 34 .._6O1j.r$xj3*iai;1ir1g the meaning the word assessnlexlt. arising as,» "£7 'Total :'ne(>m;e means :he iariai a::za;z%'%.f,"' income, prqfits and gains ccrmpmed in i.h_.€>' 5' laid down in fI'h.£;' Act, and there V reasons why the word. "assee;éfher2.!:';'«.Qeearfmg._ia'V"

the saving provisions sI'1o1.zIa'ebe.A_Afe'Si.rzEe£;eei-.in.' manner :~:a.:gge:~;5:ed sa a.L~i%_ :.e>__aeXci'aae' proeeeaf.?zg.$%ja;? assessment". Qf escaped i;T€§;I?'E£? orViL:-1aciflVear§a€:§essed income. .......... ".53.; its ;r'15r'né_}az u§e.r._1se_. ""Zf«:)" assess"

means "to the to determine such am0Le_r1!:"'. T'v}1eV~;§r§)ees$ ~Qf;I:ewa§;:§,eésr11erIK is to the ~'§C1Lf714(',""'::.A:,:J.')LiI"]54_9;'3€i' '~'an'r;i. : f$:T'VV._iael1;ded in the corzr'1;r)'i5aij(:(>r1L"'::fi§'..{'ae'~ier}1*:. 'faf_sVe_:ssm'er1l:". The reasons Lt.»'_I1iC?'1"' V110 ean}p.§'e}1er1sive meaning to :'fjhe __ f in section 13{1} of {he Finarzee Ace' :Z'Q5V(},.."jAaperaIie equally with regard to the s'avir1gVpr'ovisio'J'~eSV under present"; cor1siderai.i0n." _ T. - "'agé;.sup;~eme court. in the ease o1'c.A.A13RAHAM =-~ g/S~.1v%IN(:s)13a;€gg:"TAX OFFICER, KOTTAYAM, AND ANOTHER of iE1e"Erié1:m3'1e Tax Aifi. held as under :-

e.xp.§ain_iv:1g_f§'1e Ineaxiing of the word asssessment in the coxltext 2 $42'/* /1 review of {he proziisions of Cl:ap:se.{f_l".»7 the Ac: sa[f'icfem',ly discloses {hat £,l2e--- ufowéi' "assessment" has been used in _--~éE:;3.--..:'o,>itiles.f.A CoImoIali.on in that" chapter. '.Fl1e I:f1':le ..of the o.ljioplez9" 'V is "lJed:,z.e!liorzs and Assessrf;er1'i.;._" A' Zl'lie.,V.sec£:io'n.j'~ whielz. deals with "a.ss_essn?jevn: V.me_rel§§.;'v«--.,§zs> compulalion of :'r2oome i.sl';<:et?r,.ior2 23:. 5:11;": seoeral sections deal r1o£fi"u2§.th coffip*:l}l.ailoi1._ of :I'ioo7':1el bat"
d.eI':ermz'naiion of _ 'joy' imposing liability and the proee_dz.zre--. that; Section 18A deals'««j:.§i:*Ii;l1 ;=.'adgvc=lrice~ }5a.__'L'j:I1_ezfi[I; of tax: and irnpositioiofV-;%g;§1ial;§.es"Jorljtlilu{fie lo oany out the prooisforjs £E};ere£:'l,_"V deals w1'f.l1 power to assessVirlcliolduql"'n1embers of ceriain companies ozl.{:l1e-- have been distributed as divicle'.=::d,vv section: '2«.;?~l3 deals with assessment: in case of deparlurefrom taxable 1,em't.orles, section 243 dfeals a.>z'lh Collection Qf lax out of the estate of deceased persons, section 25 deals wz'1';h " .l'asses'sm'er1£.' in Case of diseonimaed business, seefion" 25A z,oii"l1 assessment afler parmioa of Hv:'{_"l<:':iu undivfdedfamilies and sections 29.; 31, 33 "arzcl 35 deal wfilr, the issue of demand nolices and H Ehejlflirfag ofappeals a7":d._f1:)r i"€l.?lt1'i£}if1Q assessmenfz cliswrztlmzea. zzheir business.
£9 and seeéian. 34 deals w-Hi': assessmeaz Qf l.?f?.€f'(}i"ljl£'3";3''V'~ "

wlliclfi hang escaped assessrriear.

The expressian. "assessifi"er'l:i.«"e used,.ia"v?:l2leseC sedtions is not used merely 1",a"A~Zl1ell'._s'er:sc> V c:a:n_puz:a.fioa Of income a.r'i{3.4__i?1ere" .v'_s'z'.a {}l.:?'_'fl1:§lf}lflerfl no gratmr:ljI9r lzaldmg I'l1alj"vsa':5'l'1:~.=r1 by 4%; ills declared {hat i'he parigrjerssl"Lvaf"--~.,mern.t:§er:;., Q}; the association shallbei;'joirl.lsl;;s{,tzaai~.sel)ezjally liable to assessmeni, it is V"arv'l1'l3,,,{V aeclare the liability l:Q«.§ari_=:pz1£aiiQ;i -i.aea'zj;2.eviHiaa.er seefzian 23 and any, lV3':Q agj1)_l:lCaZ:io::1 if of procedure for declara.1§zi0%1 aridlliirzpasiizfafifQff{.ax liability and the :7l2ael1i;2efy;;fj<)r_ erg./b;<cernent mereqfl eZ§lOr_l1..as_ the egtfigression. "all the provisions of ;C'l:ap£:'er9 1-'fisliall so_fa1' as may be apply to such

-'.,_.lasssess;.menii"' la""fesEsrici:ed. content: in ierms it says

-..t:'l1afTall«vl.f:l*:;eprovisions of Chapter IV shall apply 30

-_j'a:*' as.___ma'§j be to assessment' affirms which have §ETERMINATION =-~ MEANING:

18. Simi1a1"I3f the n'1e:ani:1§i of the UL--'{)E"Ci "Ci'3teift11ii1a.t'ien"' also has to be kept'; in mind.

In JASWANT SUGAR' M1Lj:;s_ "L_i'D. LAKSHMI CHAND AND orarxtfirs, reported S1963 SUPREME COURT 57*? {:5 so C"1€J §}. Er:-»::_s hezfi as miders "IO. The e,>4€pVf(;ssiT0.z"xi* 'f§:Ieféf:m»i;L1ti-{€071 in the COT111£3Xt' E 21 . ughichi . it 'o:;&§u.r$:* i 1'a, _AriV.'_1 igm'/Yes an «:{[l'eCtiua_3 ' é'fj_££{')'ITF3'S.§'i'()I'f: 5g)friibfz--«----:1:i1ich ends a COI'LJ_'iI5;{43l)Ef».?".':"»T_?!. " by some auth.0riiy to _La;vf1or_v'{'~~i_Vi i§:;::A.3_1.zb.rfiéi[iTéd '---1--:r,1d€>r a valid iaw for :';iisp9sxgtZ;'--".V?7fi%3~e2q:2fLés.is:c3ri "order" must have also {hat it need not operate . 1'0 efui iiuz. ¢'9i'A*T_Sj§5r./v':ib'.é*;~~-- ":Deier1m'nai'ior1 or order must ':E)é~judic:idiV-..0;zfv_qugzsijudicials purely administraiive s2>;9ea:;1I"iz,:e direction is not Conzgempiated to be « ffzcxfle {h.:é'_;suiqjecI:--Ina{ier Qf appeal :0 this Court T?ie' €5SS'i€r2,Ce Qf the au.€h,0n'fy of 1':h.i:-=; Court: beirlg jxgidiciézii, I.h.z'.<3 Cami does not exercise cm'.i71ir1isiraI[ive or egcecuzziue powers L8. <:haracier V' , Q,2'":E1e_power c0n_j'erred upon ihis: Courg. origfnaz. er appeilate. by ifs cr3nsizii:u{ri<)n being jzzdiciaix the e:£e:'em2in0.§.i0r2 or arder saughfg 30 be appealed ':4 .

£1 /' 3§/ jmm rmzsf. E':a:;e> she Che:LraC€:er 53;' C; 'f;;{ i4£:$i§izE '2 a0§fl.:d.ica:ion, GOODS:

19. Yet a::1ot.he;' w<3rd»w1f;i(th éiisgd izssuriiatas.;n1g:;§j%r:{a1;cé:
E3 the n1ea:1in.g of this word "Goo(i's'.f _ In the ease of UNioI\,f'Ao:~=%_vJi;2vfjz)1;éi ANOTHER ~ VS -w DELHI CLOTH G£:1§fE ;z.é;L mi..--L_s ce!j:T1). AND OTHERS REPORTED f:hr?: Constituiiion Bench of the the word 'goeds' held as Linderzfl I:'}1.%%'_."d%.{fiI"tft'iOflS of goods' make it 'ciezqr t}1a~£,_iCr' I3ec orne goods' an articles must; be {'s<3'rnei:?1.ir1g Lufiiéhban ordinariiy Come to the markei: and sold 2Q. 1. in SOUTH BIHAR SUGAR MILLS LTD. AND '';1.zs%d'':fHER »« VS W UNION or' mama AND ANOTHER REPORTEB IN AIR E968 so 922 3123.5 heid u.11der:~ Es, / ' 4-.» 22 ""f'h.e ACE. efmrges (£.z:.::'y on the maz'tz4;j}:1g.Iiz_.§§'eV'}:§f"L. ~ goods, The word 'man.L.g]'1:1Ct'uz'e' implies 5;': but every change in the rqpe» :?1at,efi,ael..Ei§;, "n.o1'e--_ 3'7'1{jl?'1L{fCl£Z'Z.'1£I'<'-L There mu.=;Ii be ;§'1.z,ch:.'_ 'V zihaz. a new and ca/]'erfe11i A. z11Lz.e'5_'..V.en.1erge: ' }'2.avz'ng ea d.é3£'ineIiu-e zzarf£&_'eE;a.raeier <2: ;,:s§e.A 1 As the Ac; does rie;]'"iI%e'* the legislature must I;?Viai:VAVVLuord in. its ordinary dic$:3iOf1;1rg;' diciionary meaning is. r'I1a£:.-éov» .I§ecV0-nr;e_ must be somet'hz'r;'g' "'L;i;fh.("(.'}1 c3ar1€oi't:iiri'ar:1_;Z_g~V. Came to the market {.0 be ef0I.§;'._ l«::no.wn to the market. "' .21, __ .15 "B3QR.e1htpi;rsTR1Es LTD. A' VS ---- COLLECTOR OF cEN:iRAL EXC1'$1z: :_REPORTED IN 1989 (40) E.L.T) 280 (s.c.,§ 'rug: m;x%ecouRr Acid. as 'L11'1<:1r"3r :~ V "Iat apgéveees to us that under the Central 3 }':.e{.e"{2s is siooci at the reieuani mime, in order =.7{.0 as specified in the enirg the firsi:
<:r;*=.--;ig:'}Vi-5;:ei.c");r1 was their as a result; of mar114j1Czc1ure Qeeds mz.1s:':e<m1e inio eximenee.
For.,./kriieles :0 be gaods £:'F'zes;e F";'"EE.£S§,' be isznown H in {he mm'i~:ez':' as Email or Eftesse mus: be capable Qf being sold. in {he rnarkel. as goods. Aeiiual ., the marlcel is noi. rleeessary. user £11 l:'l1éi:
consumption is not deter:71I:1.c;t§oe buz.:z'[iie"--.;¥7L_:*riIe'ls2s*AV must; be capable of being sold r7'i¢A1'rl»:::eil'--.V lmown in {he nlarlceig as gooc1s.V*:__
22. in the case FVVTLAVVLTD -« Vs ~ COLLECTOR OF CENTRA1-QAEXL 1995 (76) ELT 241(s.c.) TH13--£i1,¥?.EX cé)U1;1f'.1aeE4dA"esj;~u.;gg§s;~':~ excise is on IT_'lfT-iITl1,.I¢f.fd€3al,"._1'.4lT'.€;':::QIT_ prjod_l1ci'i(3--r2._of3 the goods, but the e:}ti1'e out new commodity etc. is linked" wi.il1__ Am;(:lrlCeIoib:'li'ly. An oracle does not become. g()Q(j_5._ z'n.l_thellcommon parlance unless by prodzlclio'fi"V--.orv_ m(m.1gfCu:lure something new and V' is brought out which can be bought and .3 'V ' soldg ~ V' _ V ."o%f?*¢erejore, any goods to alizraelz excise duly r}"1llsI'.sC:l.isfy the test' of Inarke£:abz'l1'ly. The largiff sefzedele by placing {he goods in specgfie and it-general category does not aller the basic character of leuiabiliiy. The clul.;; is ailtmeileol not because an E. %V/ ,,,, ..
24

arfieée is r:?ooered. in any of {he iiems or i£.falZs i;:'--.._ residuary categery but ii. musf. jimf'}1er have prociueed er mcmzgfactured and ii. is eapQ}iil'e< .;. being bought and sold. "

23. The A'pe;>< Cour*::. in' (',.E;l.'§'.-";t_f,f (';fW MOTIAV PVT. LTD. VS. COLLECTOR o15L'o'c_.%:NTRAi;-«refine AEMEDABAD reported in 1995[76) 241 $ection 3 of the Central Exciseand S{:11T, .A{3VJ[...' 1J9%14"}715JLS'>?%}@.1'C as under:
'"'Seet1}o'h,é3V iie:;ijIes;:_:_.:i__L;1£y on:l valVi_ . egccisable goods :".the..T scIfte.dL;le, provided, they are pfodaced 'of"fi:::}i1;;fei'etured. Therefore, when the _g()ocis"--,§:u"e V in the schedule. they are exeisable' goools, io11.i" whether the said goods can be to depends on whetiher {hey are rnan1.§j'aciureci by the person on whom.
d.:1i'§.;2--V'o:eoughi" to be £evt'.ed, The expression pfooii:;e1o'i.or1 or mo.n.z;j"aC!:ure has fiiriher been xexfilai.ned by this Court; to mean {hat (the goods so H produced mus: safmjy the zest: Qf :narket:abiiiig;, Cor1sequer'1.i.Zg, ii, is Cziways open to Zhe assessee to prime fhaz even ihotzgfz goods in whiich he was :25 carrying on bu:3;i:'zess were e2<cisabl.e goods; mentioned in t:he scheduieg but they eouid 230%: subjeeied to duly as they were not goodgi :"

because they were not producefi or rn_(1~r::;.f§:i}:.Zit:*e:d«. by it or if they had. ' !T?,C£?'liJfC{C{.I,£E"€'C.i§ they were not :§%§zfZ:ei:e{£. e'r".Veapablefl\,, Q1' being markeied, "

MEANING OF "RATE .A ~
24. If; §s.:j:':».__thi.sg bziC§{g.reu:fj;dV_ We ghézve to interpret the word rate of €iiLi'ty.f'~». '" «' The g11eS'£iQr.1_ xV§i1é£t.,._iS, _t.1i1e meaning attached to the 'rate of duty' as me'r1'tio1"1ed_ {r11fii'e'r these provisions" In order to unde1*sLa.nd ihe.A§ifo"fd ' t'a'TLe of duty' and the dispute relating to §£ee§'L11 to refer to the meaning assigned to the said 'J35-§"_€§ by 9;:-:i1;iTza.:z:1€:r:i. by uray of an expianatima to subsecttion {5}'%;c3 5:-§e>u::§V;~g "E2913 by amer1<:ht11e:1t Actt 29/1988. The said rzmzezadizaent wag :intended to be brought into farce from the ' =.g:§a,»ie.A'«£.0 be riefifieci. Him-'ever, ii; W215 1101*. bmught ink} {Cree at ._.:i1.'§.P N0i:\>a:iihst.amdin§ the sgmaeg in erder £10 unde'r5st.a:1d the 233%,//fit "W~'~§'a.
26 meagmlng ;1es'igr1ed is the worci 'fame of éiuty' by the P:a,fi1Te;1£:1enL as per the aforesaiiti intendecfi E1'lI'i€fid.I}."if3§1"i, the S§a;:ffi'e';__be Eooked mm in order to 2:s;pp;"eeiai.e the phrase _'--3:a--te__ 0iui§_,f used' x in SCCTUOIIS 1.36 and 1.3013 of the Act. 'whinéh z:§ee;d§' ages'-urzcier A' "Ez«:pic1:1at.io?'1: For the pI.Lfr';-3.oS.es of §h€s--xsz.:b5;%:ee'£'iosi. the defiermination eof a rai,e..of'*vr_i_u§e;; in reiaiiorl in any goods or val1,zat,ioVn*«.of <_:ar1«3;_; g;--or§.c1'::»:__;;*"c_)"r«.ihe purposes of assessnient of dzztg V_i.191:;V[u}":i'1eS: the ZCE.e§'efr:1,ina€'ioI1 of 0.
quesu'on5. ~: Q I _ V ' :.a}'"~ 1:AIe{;§2$afi:"i§;__'£o._ieJ'r.e«-- o;]""olL:;t.y for the H b. V1:;:i'Il'71'Vl"6?» beiog.:ihforeefiufieiher under rim-r:,V;fc:nw.s i*argj'Ac:, 1975 (51 of " igfzder any other Central _;;11;oz;=iolirIg for the levy and . eo£le=:f'ion of any duty of customs, €fi%eiai.ior1 to any goods on or cgfter the 28"? day o,FFebruo.rg, £986: or 0} reiaiing to the 1,:oEue of goods for the purfpoeeze; of assessment of any duly in cases where {he ossessmenii is made on or ofiler the 28"' fiay o}'F'eE§r1.:o,rg;. E $386, or '§\_x 'K {3} La:¥1et.f1er any goods fall under _pa.riiCular heading or sub--heCz,dirIg cgf' me First. Sch.ed.z.aEe or the Secona ~_' ;E-3eh.eci:.Lie 210 the Customs 'I'ariff ' s V _ 1975 (51. gr 1975; 02" z::~1q;1_§::.qg~jV*e~..L' gaocis are or nejff HeOUere(;'i& fag particular no::;'j'iceL*;ior:é_'_'[ '"0r'de5i"

issued by {he '€]'ex1ierV<':i. _C§c>verr1'rfi§e;1.!§'_v. granfing totai Vpartziaf'e;»;eir:fi=iio.f; H from CW3}: = CU Vwhether irhe goods 'Ihé . »;A;}urp(§s'es" assessment of ' " 'iii-1;f1;._sh:;1i'-be enhanced or reduced '<.bg* f..he ' (f£.¢_fi4CZi.f1.OI"i or reduction of the ' w<:m1c)im:s.ir1 respect' of such mai,'r:ers specgfieally provided in this ACT' *pé%%f"é;1s2-1.1 of the {-::>:p1:;m21i,:i0n Hlakes it dear that \:§ete:"131ir:é1ti@'r1 of {he rate sf duty means Whethez" any goeds are '~~:_i:::i--;1b1e geeds emd wheihezr' the fa-mi? 05 ciuw of cusisms an any ' * ~.--;_2;0o::§s is 11:}? wheihez' Eftfze said g.§e{)ds are cm are 'not <:(3ve:"E:d 1 5 '§%f2é\% Lmder 21 pat'i,ieu1a'r n0t,i§i.<::21ti011. or order isssued by i'.he3..V€3efii;:aE Gm-'ernr13e'I1t er the Boarci, as the cage may bfig gra:r%gtii1gV.V_tei.a§ref« M ggartial exemption from duty and wh_ei.he'r the'=xi§:i;1'e.:0«fA any-«.. goods 'for the pu.r§)osse of 21Ssessn1en'%;_ e.if:_'<:i1g.?:1y <;?zi <:L1et;0"1*:is__ shéfii be enhazzeesi er :"'edL1Ced 'gyjadditieix-._ <5: :*e1i'L1{;t§.Q_n Qf;"

amouxus in respect of sueh "£éi§.;s:uc::'ii'Vi5<::;1'1:1y p'revide<:§ under the Act. Though» the'AAv§e;"d "rate of duty" may not in.r:1ude:Aa11.:._th0e-ex the explalnaiion makes it r11ea.ning is :10 be the purpose of this seeii0n:':_Qn1_y--A.A explanation is added to Section the power of 1'ev1Tsi0n. of Board or C-Qt1"11:1i.ssi0ner bf' Centrak Excise in (:e}:ta1ir1 case. In other be conveyed by the explanation is that "ihe'__r;2L1{'hi§§::j.i.1e.§§;-while exereisiiag the revissionai jurisdictien shall :1ot*§_{e §._:'1t'€>Vt§.zeSe quest:i0'ns. Thai, in no way eomee in the way '$§fV_ufid€'Fé11aI'1di1'1g the mea.11i11g of {he phraeee 'rate. 0f duty'. On ' 'eefgjhe e0ni1'ary ':1. clearly Sets @231. {he mic:-31.10:: sf {he 1egi:~"£:a't't.::'e in
-543 far as; the §"ne21:zing;g; {.0 be atiributed 110 {he said §}§:ra..se. /,..
32/ ,&a§§:.
29 '§'he:re£'01'€, the: said fllfizliiifig {timid bit maid ink; '{hé:. §::~h:=::ss€ where ever it is used in the Gihéii' p2u't.S sf '£3718 s;£;w;*§_u.t'é;'VV%§'s:.. _ by the Apex Ccmrt. in Navm Chen1ia:a1s,»::a.:s<:x It "2;t'i:'s-<:{v-.rgj':;:.1d.<--Ab<, _j;i;= .. C0'nf0'rmity with the §z3£,erpre.'t.at:;0n §}1ét;C€€::"0:}*'Vt§'ii3. S-aigié: §>'E1V1:'*a,_sr::~.;f1':3.} ma: 2X;)€X Ceurt as ikffiffl as 'i1*1f:'E'§_ig;3j C£)§:i'}'.T'{.,' as is {3'11A§§&.."£4Tv'fI'(3_1§I1 the ibiluwing decisions.
25. The 'ifigcasion fie interpret, the said ,1; number of decisians.
I~10we\r§Si".: but almost near to the sad. 'the. powers of the API3eHa1;6 T1'i'buI_1aL with 'rei13r,enfc.e"£;r3L' the jurisdictiora of 2; special Bench V' _an<i¥}__;in;b_:;r;°di.;1ary 'E%e':1ch; the S'upreme Court had an occasion to _ (icJ1f::3:Z.s:ié1*7_*L3:é_é'~?e:';v St1E1'1€ words used in both. the sections in the §£a§c?5 o§ ;i§r,é.?i¢fii%r'cHEMIcALs MFG. 8.2. TRADING co, Ltd. Vs. C0L:.,EC:1'dR 01? CUSTOMS reported in 1993(68) ELI' 3 SC V' ufié:i=é:§ the C2.2.si'.01;11s Act. The Apex Cfliiff heid as undfir:
Egbx"

;purposes aqf "The corzigroversy, fiherefore, reiaies; ;'£'(;-._f£he_L' ' meaning to be given (.0 the eX;>;9essi{)ré 'dei'erminaZ.ion Q1" any quesz.ior1,ha::ir1g Q n;é2'a;:+:;:-n"zo_f, the rate of duty Qf customs ear {'0-~!};e xj:'€1li.Le Egf £':'fi.ee.___ goods for pm'pOSGS Q1' as§;ess771enAI. It seems tfozus'. {hat the key lies in thew u:1Q}e?§; :;2}~ me C3]:

assessment' i'h.erei__n. H/I'1ezie_Vf§f1e_<;:ppeafi'n:.:QZAve;5 the detiermination QfCif.Lg f}LL€-é3ifQI1 fi1.4§}'i; a reiarion, {.0 the rate Qf CLLSl',OIT1S-V.' : ,ff)T'f.__fifE.;é':'.i?.L5TpC)S€S Qf assessrnen_£:Vi}1_a1: :L{sx;':V:'vi3e heagfby a Special Bench. §--\Si1f£:£1'é:1;_'lr__,*V.'"'1.32,-e}'e invelues the Viheit has a relation to %z§;t;::;.;e§gL%e._;f (he geviifificjses of assessment; £'h}:1I 'appeeii '~V.§m.z;S'z': Ifigfafd by ca Speeiai Bench, Case::j;f*aa,v: rVeEa.'ie' 'rate ofeusioms duiyjbr the ssmenr and which relate to the :;va§?;{€ Qf go0ds"j'of the purposes Qf assessment: are .,Vad,Iu)ieedi_ijv jirealied separateiy and placed before VS;5Ieeia_£ B{ez'iCf1es for cieeisiort because they, more A Qfie-:'fz _tf}fi,z:i11 not, are Qf frrmorianee not: oniy tie the i.mpt:rI,ers who are parties {hereto but also £0 many ' ._oi.fier importers; who fmpori, or propose to import. the ~:9:cLme or similar geacis. in zihe d€CfSi{}?"lS Qf CZSGAT in such mazrers ::>o1.a.Zd. have wide c:Lpp£iee.E.i.on ijheg 2 we 31 are, fay {he terms Qf {he staixgzie. :10 be rendereci Egfg Special Bertches. The phrase "relc1ii£3n fa?"
ordinarily, of wide imperi. buts, in, the corzi.'e;s2i"'Qf{:ée__ i.- use in the said expression. in Secrtion 1290;-..:.z iéfiitsz be read as rneamng a direCa':----.and p1'c}:z:"t2'?aie.:'.V relafiorlship to the rate of duty a;{1'd..§:0 the 'z:r_i:Zz.:eu7* ' goodsfor {he pmpose Qf':z:s;se5srf'zer1'::. "

FL1rthe1: at para 1 fihey firgderz a "II, will be see:1e£.h(;d_ V3ufl{)~sVee1:£Qf1"~!5} uses the said. expression fcie:er'mii2az.iori "Qf question having a;~reEc;:;': ior1 :5; the Fate ogfeiutyfior to the value Qf~goadé:'g;]br*°izrfze purpose' "(}f3~CiSseSSITl€71f' and {he _I32cpEc:;na£iO%2e'fljierefov_]5roUi.des a deffrufion of it for :he";7u'rpos'es Q-{.7 E-hie--..si4;b'§section'. The Explanaf:'z'.on says i.'haf:_f. (The expression includes the »'.§--;;Zet'errnir1ciz'io:2.VQjia question relatzzing to the rate of the value Qf' goods «fer file purposes of 'V VcL~.3}3'ei$s to the cZass§fi.carion qf goods under the whether or moi: meg are covered by an exéénfqjiien. noig'f'icai.i.on; and whether the value Qf A goods for {he purposes Q1" asses:;mer1.: shouid be "'1;«:;:?'z{::neeeE er r'ed:,:.eeci fiaanfzg regard fie eerigain me:::€'£e;'s f.hc:.r;z':' the said AC1", prmzfdes for, Aiéfmugfl fi~.u.....m3wm lg.

32 this f:XplCtIlCll.l()It expressly eonfirzes the ciefinil"z'on of the said expressicm; to sab~seei.:ion"{'5.;l'~-- 'V' 12 Qi' Section 1299, it" is proper ihat i,h.e_.~e:»:oife;>sVs'ion. used in the other parts of tlte saicl'Ac*'l_ s-hoLllcZ._be"* interpreted similarly. 'The 3:.-glatzittory "zlefir1it;ioh_l"'~_ "

accords with the fl1€Ci.I'Il,I_1Q'~~_VLU(3 h.-ave giizeri _the_} said expression above. Qizeslions f"ela:t:i;;1§;: la the rate of duty areal tolVl_:vaVl'ue of'l'goocis': for purposes of qttzasiioits that squarely fcill toitl1--i:n.j_ 'tltev. ;i:;;ec'iru:iig.?..' the said expressiohfi at-fl dl7SpL{tl(:'5:(1S'w tof_i.l'zeclassification of goods 4ah,o§as' '£t,_:_ l,uhe.i_.l1'e.r oi' riot; they are covered by anl..._eXe.;fipl:i--o;fz._ r.i_o':'i]lc=a*lio_t1 Vrfelatzes directly and j;}_roxi:~natel.g'w.to'»tl1"e.ft:zteof duty applicable thereto for purposes'of.a,s'sess:*hent. Whether the value of _ goodls'joI' ptufposes assessment is requirecl io be ii1i:reaseol~--ot" decreased is a question that relates and proximately to the value of goods for T. pu_f33os5gs"--f3[' assessment The st'alut:ory definitiori of Elie Said expression inclieates that it has to be react to limit his application to cases where for the purposes of assessment, questions arise c.lirect'ly and pro;<ii":'ia£.eEy as to the rate of duty or the value Qf the goods. °' '%.iL,,./ $33, s§§.@ 33 '.2. A'; para 12 they e<m.a':1::de(1 ass 1.E'I1C1€t"Z "'"I'hz's, ziheng is {he teei for Ihe' :Uz.zr'}'J:'??j:*"\:%':>;'>"v.515' c:Z.e1ierznining whez'h.e"r or not are »{1ppeal._.'Sf1t)1.1fiiL_ib heard by a Spe:::i.al Bench of 'g;
not :1 reference by CEGAT iie3 'i1o:'{e.Ir;e C01..:'r'in and wh.ei.her or moi, an iiefis" rl2ireef.1Eg_ Supreme Courifrom a cieeis_fe?z.V:q;'7.CI£G21,;T;f?:: [deesVf{.i1e question requires d;eie:~mi:,»'?;a§fer1:.;fei§}'ea d.ireet a.rtd proximate reiaifion, {fief;1fi*pos_eS-V.q,*TT.;i.9.sessz1":,e:"zzf, to {he rate éegfziutyi'd}5pZéeQEQ'ie..Vto_the or 10 the value Qffviiflé 26, '-In .{fie'j"-ages""o§"-COMMISSIONER or cUs'roMs,. CHENNAI _';'I{a3:;¢i'*;éHi KRISHNA AND COMPANY IN v'2€!d()[1.I:9) ELT 4(SC)_. the question involved ws§.s..w};et}1e:*.f;h~e assessee is iiabie to pay interest under Sec.ti0'r1 6:I-(;3Z)--.,ei'x'{i"ie~.CLye'ieI11s Act. "'\?Vhe'i1 the 'i'Ir1peei{i0z1 of if1EL€i'€3E3'i
-- uncle"? the "é;fere.ea1id pmv.i.si0'n was cthallenged before the '.,':§f':'i1:1;1r:21EV;"the '1'ribL1n.a11 he-Eel 'that. DEEEC Scheme having been :§:.ade'A agépiieabie ie the g<3<>:ie EX}. qmlesiicm, the q'u.essiie:1 of u "'pé:j;me:fl. ef m'i'eres'&. would not arise an. ad}. Agaiem {he said 023C161', the :"e\»*e':.:n.1<: §3rei"e1*r<:2ci an a;3peai c§§rec>:,1}-* {<3 éhe S'i.1_j§)}f"€F§1t'3 Court Lmder Sec.{..ior1 E8015 of the Act, which e::2*::1{1"e3. .{-o"'--3:)<3 dismissed.
2?: in vm: case 92* coMM1ssi0N1::R~i3F"T'CU.€§f1'z§3«:S~..gE.xg, MUMBAI VS. NICCO BATTERIES L1iia"Iti*En_, 'S§EE_'0R§I'ED rref * 2001(129) ELT 292 (SC). the be:1é:£7i,t._u£ _eXe1i1ptiQn nbtificat.i0n was granted to earlier f<>'iv?t C.Ui7s1'gn':"11<é':f1jt3A'afid at the Stage of cieagrance cf the fifth co115i"g:;Dj'e:rii*,_ ';hé $_;«1i_é;i :b er1efit was denied under the Qr--<:¥.'e1fs5A; {)_i_7_V_ 1h{:%« _S1L';p€r;<:i'j'--VO;i"fi:%é-Vi; without assigning reasonsg ~_T.1"1€VT1Tib_?;i11§t1'"~§(5u3.f1d fault with the said action and extended i;1f'1--t=:'_ bstnéfii consigninent also. Afgrieved by "said o'1':'ie:.::'_ 6I* the '1'ribu.11aE' the revenue preferred an é,i'pp§z§E is the Su'p:fen'1e C0uz'1, und€:{ Sectior1 £303 of :;1:::";:*s%--%:,. .
.. 28';~ In ihe Case of COMMISSIONER or CUSTOMS, '2ar§Ew~;bELHI VS' PUNJAB STAINLESS STEEL INDUSTRIES, REPORTEB IN 20am 321314' 1o{sc}, ihe a.11:3:g{a%:'§.0m againsi; §;/"
35

the azeeeesee was that the gantade exporteci 'u'r1Cie:' the expert:

obligation were mis3»dee1aI'e£t, In as much ass he t1SeCtgt11e material of illferim.' grade to the (me t'€*3qL1iI_'£i'd'«."VV'~'i_I__1:
m2m'L1fae.t.u.re of utenssile. The Said eharge..w;1'su_he.1:d to be__ pmved en. 'the ba§3i..:~3 at the report 5,53' theTe§;;5ert':end"i;tt:.e't9e't:ez'e the goods were ecmfiseated. "Flee.;3aid esfder Wale~ehAa11en.ged"b3?'~.L the asssessee before the TI'ibL111Eii}=__%tn1'}§E "['1*tb'J_;t'i'a1V':aside the said order, Aggrieved by sz;L;n1<;§_.: *E'ee.feve1111e ptefe1*1'ed an appeal directly Lmder $Aee_t'.tio.1_1Aet; before the Supreme C{>L1z'tf 211i;¥.t- the"SL1js31*eVmeV Cr)--i1rt__set aside the order of the Tribxmai' anti¥fe;étQ1fed 'the order of the Cernmissioner of Custc:>rr1s. V _V It1"..t§1€ ease of JINDAL DYE INTERMEDIATE 1i'.;t.zt'2'*:::*~Ei) EOLELCTOR 91? CUSTOMS, MUMBAI V . REI30RTEBv"'fN 2006[19'7} ELT 4?1{SC)g the 't"'ribuna1 had " ttpiizeld the erdez' of the 21.L1i:h0'1'itie:3 and denied the exemptions. *:it1é 'éisseeeee p:"efe2"red an appeat tmder Section 130?: of the u "';'&et'. te the Stigarerzte CerL.13"t._ The St1pi'f3§"t1{3 Cc>:,z'i"t a53i{t.e the ex"
'&4:-W 3% ezrder 0!' the 'I'r§bm:1a1 and heid 'shat; the assessee ie ermiled {,0 the benefit of eXer:1pti{)m 30' in the ease of COMMISSIONER cysfemég NEW DELHI Vs. PHOENIX I2\tfiié:RNA1::eNA§:;' 'L:Mr;r'E13 REPORTED IN 20071216) ELT J5o3(:éc?).:':.1;§e quiegseon was whether: the assessee has inipoikted in \'»*--i_0V1a.1_eic:j_n Gt' tide Exim VV Poiicy and consequeniely" ~1§ab1e»*"f'0" Vvlpaj/"~eL1stof£1s'A ciiaty. The '"{"ribuna1 heid that there .e.i=ie'f.-a{iQ'n Poiicy. In an appeal preferred<'«g{ga.i11si Tribunal under SC?-CtiOn 71'30E; SupE'f3i'1}€ Court reversed the E'ind.i'r1g of the 'T1ji}3x{1'_1"1éJA' by""'§10lding that as-ssessee is guflty of V*iole1i§}}g 19am :5egA:)'oi' file Exim Policy 19929'? and therefore' _ii?<:'1§:')E;;(? 1j€'§ be assessed under 'Far§.i'fE~'Ieading 64.04 and El.CC5£'.(iifl;gfij;,"Ih¥3'y'{XJ€§'E3 iiabie io pay duiiy of customs .3? E309/:2 + . CV[).'at 1.5% izd. valorem and the assesssee was not entitied to "a£¥30'I};?§_3'SEii;C§:f[1E'{} 1'ai'.e of dLi'€,}7 under Notiificaiien N'O.45/94--Cus. .' d'a.ies:i":':,S.§994« and Ehe depa.'rt.men§. was right in .invek.ing ' 'f%U.§e 8 of the Cussmnze V2-1h1a1ti(>n Reiese E E; /"
vex"
3'?
31. in COMMISSIONER OF CUSTOMS, T UTICORN VS.

EDHAYAM FROZEN FOODS, REPORTED IN 2008 [230] ELT 225(MAD), objection was taken rega1"di11g the r1121i11ta£na%_fiEiiy of the appeai before the High C{}'E1i"'§'. 1m.de:" Seei'.i<m..~«~51 Customs Act, It was held that the dete1'n1ine;i,1ei:~.VVof:Vques1:'io:i._ V' involved in this Case does not have a1;re1atiO's1Vt0; tI1e-- fé1'te .Qkf"dutVy or the vaiue of the gaods for ':he_ purf)0se..o1' assesst;1ent'=.' therefore, {he appeal was n1a.in.12i'in;i'E31eH "I'he._quest.i(i:1 iiavoiveczl V therein was whether Pr21i:vn«_/Sh'f'ifi'i;3e--:'fis a1_s0 .fis'1V1"'2u"1'<v:1 liable to export e'ess"« Fr0du(:e Cess Act, £940 . In coming to V't1}:1__e"::Qri(":1uVsi0n"i}?1ey reiied cm the judgmem of the _ 21pex.§;011ri'. in CHEMICALS case wherein an c>bsewat1'o11 w:3£s.. r11_3,p1e..i',héi1Vthe case did not have 21 direct or proximate 1:eF\éii.Qn VV1:(;«:3'_"¢.if:e~.pe§{1'pose Of assessment either 'to the mie sf duty' ap}p1 i'e;1b1e.'i.(; {he said goocis 01" to ihe vaizie thereof. AEE that {he .e,Add11i0ria';1 CQi1ect01"'s order did was to confiscate the said goods _ ai3_1e*.;>a.-='ii1g the assesses spf;.i{)11 sf redeen'1i:1.g {hem "upon. paymem '{;a'.:"' .21 fine ei' Rs¢1€}.()OO;'«. 'i'ha*;. the assesses mighi, avaii ef the <mmI.

//..

opiéon, _pa}s' :.."m: £32116 and {tiem Q16: ssexjd g<>0r:.i5;. Whe1'1 qLJ,*&'.,'-__3U(}i'} as to the "rate of ciuly and V;-211.163 for t..'r:<;>. p1,1rpc>se: of &1S'S€SS'i'117{:3'§1u§ might pc::3s.i'{3EjgI z11*isr3 is; far {:00 i"€i'IE()I€ 3. ct<)'111.Eng,§czri€:y tr.) séJ;;:.<;;t"y the: test 1}}:-,1E: is laid down. "I'1'1ere.1?}:*'e' it '\7VE'}',S " 1.h21t;f_t,h<-:

pa"ir1c:i;31e laid dax-W1 in the said case 5-?;{;.Ls.a-i:i<:%I};é' a.p'p'13Af SQ §11e iTe1_i3"i:a of this case, where question iE}Xf(5§:3{€'Ci _s'::a_téé was"
whe3t;h(::r fish 'i11c1uc':es Molkzszts gm-51 C1"tia£a1£:ea'f1sv._a1}.r:i as such the Cm.staceams wouid ()'Lh'e1wi§s7-L_ef';11vea1i1. §;.:1.d'».include Pra\vn5/ shrimps and Ilsznczé' E?:'21\.x31'iés"i1';'1{1 Si1f1;n133§ . &sE10L11d be rc-:g'arded as a fish Forj, ~é.h'é:_ Iiurpagae' pf._a1s$e$s11'1er:i. and szuch meaning should bi: giver: toihe"€X}3.1fé'ssio:'1 "['"is11" incorporated as R6111 No.7' to the In' 1:-hp' of COMMISSIONER OF CUSTOMS.
5:33:11 ys. wéém" INDIA LIMITED, REPORTED IN (SC), the qu€:;3Li011 mvolveci was whether _ 1;h.eA had cc}z1m1.i.1:£,£2~d bmazth of flxizm iP0iiC.y, 4 ':': . "". :U]iifi1EE'§.éZ'"§};TA,':. the Tr§.bum11 held than E,her<:>. is ':10 ?:m3ach of Elxim _ §1~'--:>§3a?:y_.A:;1;3ci c:or1se:1z;<3nE.E§a no duty was paici. Thezt §'€3V€'I1L1.t':E :
/-
1;?/'"
%22» 39 aggrieved by the said. jucigrrlem, p;*e.i'e:'rec§ an appeal f.--Q me SL1p1"en1e Couri urlder Section 130$ of the AC,§1. The Court u.phe:1c:1 the order of the 'Frib1ma£.
33. The Supreme Couri hadA"21r1"._z}e:t21siL3:§ >::o eo?fiS_z§.cAi:e-'if Elhe meaning of the word 'rate' (PRIVATE) LIMITED vs ,.1ooMMzssiIoNeR or -mcome TAX, MADRAS (1957 VOL. 66" _,r1"R,_é.ov41'""=\$5:;§regt was heid as uHdeh~ 1 " .__ V "cte3:_:::,_zin;:>1izjrLl t}:aI{ ' expression. "rate hoe' E2e1._3_ré:'«usefl"ir;_ Section 34(1) as meaning a jraerior: of" is, in our judgment, not L_uarror'1~t..éd; the: zzee of the expression "rate" in .«.§§h:ee'~eor1£ee§ci'»._.f21 Lo.."1ie}1 ii: occurs, undoubtedly a the taxable income and the fax 'V 'i;:t'end.ed.. but the relation need. not be of ,..;ihe «zTef:':;;.reVVof' proportion o['frozei:i.on. The expression oftert used. in {he sense of a stomdozrd or Irleédstire. Provided the tax is compumtble by the }:1pp1i.eaE:i<>r1 of a prescribed sfaneiard or measure, H zhough not diredigg refuted to £.axaE:»ie income, ii' nlag be ealied tax computed ed. (:1 Certain rate. We ii,/"

V?

40 agree wz'.1}:. the High Gcmri, zilae" {he-.> i"'6b(1I.(3 Q}'f-"Em:

and the r€duc{:z'o:'1 Qf Si,tC.'h. f€l')CZIi€ are es3e;'1'E,£d{.lg}"-VV rnaz';t.er:':<; Q/"In53z:L:~7z,zre or sI.anda;rds Qf rate. '-- EXCISE ACT:
Sfictiou 130 and 130E a-25¢ 'i1fi1 p21i:':firf1'at.é:1"1€: Wi'[h Section 355(1) and _35L[b)Ai_g§V:'r4he"Excise'--Acr,,,' 1944. "me Supreme Court and E»Iig'I1 Ccu1*V§:Vs:. :m--..Qc:ca3io.n to interpret the said Seeti0'n*35G 2.}.A1'id'»3-ESE. i11_§1.u1nVl3e1*"Ci" cases. '. 34.__ I3.:§fic.11_ offthe Andhra Pradesh High Court in the .01' "33fi'1*EL NUT POWDER WORKS ~ VS _ C0.5affl1SSI(51'{ER'REPORTED IN 2006 (5) ALB (NOC104)heId Ljhéit de~1g¢rminai.i0:1 of the rate of duty in re}:-:>.iic>n to any go-gas .€fiv§j}i1<'Et&-3~'dt:ier1niz1af_ion of a question wi"1et.her any goods are ex_cisa_;}5~ie or not Again; a Division Bench of the Andhra nPrad;€:sh:E""£§gh Cozsrl. in ixhe (rm-3-e {sf COMMISSIGNER OF €.EX., VS. SRIRAM REFRIGERATION INDUSTRIES 5;
fig, .
4E reported in 2009(24Q} ELT 201[AP} helci Eihaix ih§:"'-g:,:€$t.i{>:: whether the pmcess if any ::'nd€rt1.aken in {ha S$t;'}"§"fC'€E'{2C11V75L.«f€ of the respandem ztmoumss to nlzzrzufaciure 0£"A..;_€§i,21r"t:r;%fs '}f}:.<':'§L}."V1'aiT., resp0'ndem: er 3'1<::t. and if the g0't3d:2. 'pi".f)(I1'L_l.CE'§C""i' _£fLIi'T;.f}g 'fijhat L process are exmsabica g_3;0C:ds or °;1:it.--. ivoziid ._fzti.§ «.wif;_I}1i..:1 '¥'he rneaning of the expressiorz. 'de'¥:§:'i"minati"c3n ofxhe i'}:=.twé' 'of clutybf €XCi.S€ or the vaiue of the go0d.s---.Fd1*--.tl*i:3Apurp'Oses of assessment of duty' used in sec1.io:{3 5e{:-- f35L('b} of the Act' the Diglhj mej case of COMIIHSSIONER or SERVICE, Lmx' 1rS;"'.j.1EiLIif'.GmaKHANA CLUB rendered in 200.9 " (16) uSZl51_?VVV"12;9[1)el.} held {:hai'. if the question of d5férm§fi:Eif:i:Vb';1.'reiatcs to the rate of duty of excise or the value '-_.oIVV._§;<>§5:i-é:"'§QVr pUrpOS€S sf aaasegsszxi-:*nE..; appeai has 'E0 the SL1p«3f€II1_6 C.o§;:r:.

'"f§*1e Bambay E"iz'gE1 C€3'U!."'i. :33 {he ca:-as cf' €OMMR, OF fl _M;C§EX., NAGPUR Vs. UNIVISRSAL FERRO AN13 ALLIED Mgggfi 4+2 CHEMICALS LTD. reported in 2009334; EL2f,2j_f£.?t{}{"{§§>t§:.j at para 6 held as under: 'V t "We have con.stdered u'::?Qfi4téi2t:tbr#$t..'_ AA made on behalf Qf' parties arid t2ttSO pe[ftt,§,e%.ct* tire':

provisions e::gf Se»::i:tons §tI7€dA.35L{i?;3V t3§;':
of 19-44. an appeat agatrtét.,t}teV_ord<é5r by the Appetlate 7'rtE9itur1:_at ~-the Ifigti bourt except an order rflétbittrzgj;-.,tifii0r_1§,}tt'-tdtfzgéz'things, to the cietermtrzatiqrt' having a relation; to' Q]? (;itiVty"o;,ffjVe3;x:f:ts.<3wvt:9r to the value Qf go'o"a';§:"-Vb ti.~:{ses'sn1ent'. Section 3,%'3I,(b}'V'pr5z/ttéxtgfs against' an order Tn'.bunal relating among other things," « ' t.t1é" <:tét(3'fmir1att0r1 of any question havttig ?'(3l(vZL£i7{Ot;£'~._€»0V'i:"?t€ rate Q/'d.Lz.ty Qf excise or to 'tIu1e~ valuté "Q25 vggqrts for purposes of assessment' Etgf to the Supreme Court'. It is, thus. Clear H " 'j.'%'§mjttitégjtgresatd proviso that an appeal against
--.,fgr1v Vpassed by the Appellate Tribunat retrfitfztfzgj among other things? to the dette:'mtnat'torz question having Ct reiatton to the rate qf' °§itif§;j (sf exttse or to the Uagttfi Qf' goods far *>'5?:}s 43 purposes of assessment would fie to the Szecpreoiee Court. and nol. me High Com-i,_," _ V. _ 3?. The Apex Court. in the case of 5 VS _--V--b COLLECTOR OF CENTRAL EXC $2,' ;_?A1'NA ~iREj'OR,j§'Ep_ "IN 1997194) .E.L.T.456 rsec.) deaiing sf»-'ie"fl1"--,SeeE1o:':A o:35§;(1§)':~":s§Ve%§he Central Excise Act. 1944 has une1e:i:_§ «V ' V "A perusal offihe sezeici eZ:(;1useoAshoufiJs 'f:heI..I5:czn appeal iies to this "€l'ourji."ngei::1s'i'enAA'order passed by the Tn'.bunc;u', re'logti'ng £:he*""cletoeV.+;m;nation of Ciglly qe1es.fi,§,or_1a U"L(%HI:t'LIi€ of duty of excise offto 'g_rog:ds for the purposes of assessrftevnf' Narain as submitted ':of1:1.t. the 'i.anpL{o11ed order passed by the iribunal "»:..€'re.;a.IesA.i'o {i"1Ve'i5tiiiLe of goods . The said question V' " 1re.£¢tz:£:71g3*; value of goods has however. arisen on refund of excise duty subnlitzqed by {.'he' 'aopeiiarlt before the Assisianio Collector. In o:;f'1.opiI7.io11 the question Q/'UC1lL£C1IiOTl of goods in AA ._ £he context of a, refund cannot. be regarded as a ":quesiion having reimiozz Eo {he voiue of the goods for {he purposes of ctzssessmem. The Czssessrnerzf. 44 had been compieéed in the preserzi Case and E:'i1e_...__ assessment' orders had already been passeol. is only when the goods were re£o1u71.ed.g~~«£316._'_ ' question of refund arose. We are {Tile-fefo:fe;.: unable to accept the cor1t4e.ry£iorI,__4Sr£._RaoiaaVrea' Narain. mat the appeals are %={1.air:=::a§fiaole 1,'La:ierV:'-ec____ A' clause {8} of the Seci;ion, :35}; of. ate Act' {he appeals are Eiable to be azooiiesed V 38" The DH/ISI(3.1\.f"B_Efi\fC31";oF'jv'TffIS COURT IN THE CASE or PREMIER Inmeafrrom' <EQ(r,fié1v:EivT LTD. M VS » UOI REPoRT_E2§ 11% 3 oés f1£io)1.;F:L;'f"[z§a':;)" interprefing Section

35 L of iahe Act-,A'Vhe: 5 $ _".}?'rom 'r'eadf'ng of the above provisions ;€'O?:2.f::CliI1€d ia"See::'o':1 35L of the Act, if. seems clear __:o._%us_ __even gf one of the questions raised l§e;f'af'eV.bV_€'}:.ev'v7E'r€buaaZ for aeiermzinaiion refaire to a A .._ ra£;e. of excise or to the value of goodsjor 'i:?2oelpLzz9poses ofassessment, then the remedy by V " of appeal aga,ins{' the order of the Tribunal V' --. ean be only before the Supreme Couri' and such question cannot be sulgjecizeeci {.0 the Advi80rg; <4' /-» "L 45 jun'sd.icI:i.on Qf' :.h(: High Courrl. KR-,>e'3ping in 2)iev3fLi;.' "

tihe specific bar COI1I,CliI"t€£d in Secrion 356 Act which specgficaliy provides IZha.i: on {Big} $:::1i§Ci: " ' questions perfiaining to rate Qfdgtity a:1Ci"t:<§;l:z{3'V'£3:f' * _ goods neither any reference fsan be jm3c::dé by 'sh-:%__ Triburml nor can be calledjbr E35; 1:fi1_<V_3.I:{ig?.1' _C<f)'ur£,f' "

39. in the ca§¢~«.,«_or 1Cbzt1msSI9NER"'oF' CUSTOMS, NEW DELHI Vs. soNi*A,_INDi.A ;,:zm~.s:z», REPORTED IN 2oos(231)ELi";;5.'5 (S:C),:: {lie":q;{aé$:iQ';j;:fifivolved was whether the breach of Exim Poiicy.

Ultimately'. that there is no breach of Exim Policy zimd' »c1or1seVC1':.;i€11'E3y', '£10 duty was paid. The revenue aggggfiéved by saiVC'I judgr11ent _pr'efe1'1"ed an appeal to the €301.41'? under 86011011 130$ of the Act The Supreme .§Cj'€i_:11;i ordaz" ef the Tribunai.

" ..QQNCL'{ISION

40. Thereferea. ihe axpressirgm ':"a'{.:3' is often ussed in the .---[sense of :3: stargdard or m<:a.su.reh 'E~{a1:65 generally :3 an émpasz, 45 t1e'L1a1Iy fax" current or F€'CL1E"I'€I'1t eXpe:11dit.u.re., epreaef'---_etrer at district er ether local area and is distinct' frengue.1iV'e:1:1c5t1.z1t payabie for work done upon or in respect} not".*péfi'ticr:t}21t"V' premises. 'Rate' is defined by WeIf5st--et"&'t:'{:A} EEIIEOLEHI etateai or fixed fer a:1}it.hing:€;.V' 'v\t'et'd!"i'e.te'?V tttcittiiidee any tel}, due? rent. rate or A.V1:..__Ir:s:gt;.§5 ":3ea1e of amount of any other i}v.Qt'd ;19étte?..tse\V51/1,eed with reference both to a of taxes, and to a vahaation of prO1je;"ty. it: declaring that the Legislattye 'provicvle for a uniform and equal }:ete__ .A -'assessment, applies to the pereentagevv.ef Connectiorl with 'taxation' and to th§"¥??}J.L1atiVOfi thelpropertyt as used in cenneetion with V'a€5SetSs.ni"ei1t.".1'It is 3. Valuatiozz of every man's estate or setting C3é{}E¥*n }fie%.z:i"'et:?e:.f;vet1e shat} pay, er be charged with to any tax. By the 2__3.sie.e'f the expreseien ":*a'i'.e' 21 relation between the K Vtaégablett 'iz?;e0me and the tax charged is intended, but the T '§3t}?t';.i'i'}E"l need not be ef the mtt:,:1'e of prep<:}2"t.ie::; of fraette:':. The .e;EV3_:-_:§I2m.atten te St1be8tE.'{Ti'.i{)§i {5} of Section 1291} ef the §;,/ §%:"- .

«is, Customs Acti: i982; the expression is {flfiivdflgs T . _V ihe determinatiori of 21 question re1atiI1.g to the rate oi"'€1:§11_§,.rij:1:o_.iI;ie value of goods for ihe purposes of ass.ess_fi:eo;{.;:' to fi1--e 'V eiassif1'ea,i,ion of goods under the Tai_rii'f a_;1oj,vi}het1:er o:r'11ot..:{hey are covered by .211": f:X€i"I3.E3iiOf} _13oi'if1?C:ati'eI1.; £i,?i3§'X7y';h€ti'1if3r "Ehefi value of goods for the assessVm.ent.fi:2§s1'iould be enhanced or reduced h2oJi~n_g eeiriain that the said Act provides for. Qzzesitioos rate of duty and to the value oi"§g;o'isii:is. are questions that sqL.1are1jV4'Vfs:1_i'--.y;?i"ifii.1*i: oiihe said expression. A dispute ass to of goods and as to whether or not tiheyiia-are exempflon notification relates directly 'and to the rate of duty applicable thereto of_vassessn1e11i:. Whether the value of goods for o{.ss'essmes_%, .i'equ.i2;°e€i 'go be increased or _ deCi'e'ased_"is-e""oii.estio:1 {What relates directly and proximately to $,iai1,ieoi' goods for purposes of assessment Determination };iif;'=a:;«{"¢:' duty in reiatioli to any goods include deiermination of '"i..;:g_{;:zr.es{.i.oz": Whether any goods or not whether there is an 2 3':

§--.,.«/ 4-8 import. or no?;. the process if any u'11der'£ake.n in ' centre amou_n1.s to m.a.n'ufae"ture or 1101,, X&'ht%ii?1§Y :..11¢:<~%:a:':= 4_ "eXpori." or not and if the goods i:z;1;:sc;-:.'i:4e::1 eX'po'r1:edv._d.L1%i;1g' j are dut.i.a?oie goods; or not wouid f:;:11'gxvi:i_hi'1i the _oa<:3;1:1in;§"«ofthe expression *detem1ina.Li.o11 of ii3.e";::»fi,e «:3f"dL1.t3r _of'/V-Ciissiioizas' or the vaiue of the goods for toe purpose? oi":-1§Ases.e1i1e.a,1: duty' used in Section. 130 and SeC:t..*:o:<:, Therefore, the phrase "rate of tag' of {ax payable because what payabie is decided by the by the legislature in the ActI ih__e in-' judgment and alter or modify the said of has no jurisdiction to go into the oor'r'eetneeS" oV_fVVo1hei"vxIi-Se of the rate of tax payable in the Se.:1eVe rewi,e._ p}"€SC1"ib€d by the legislature. 'f'he1"efo're, the :~2rg':.t:11e23i.e.:"é«hVa1:.:i'§3e rate of tax means ooiy the rate at which E3):
is _payable' 'or f:*aet;io'n is uns'ust.aim1b1e. . g

41. 49 Broadly ihrs fo1.1owi:1§_2; disputes do not i'}31i""xov"i:hi11 {he j:,:.n'sdici,.i.on of High Court, Llfidfii.' Seciion 130 ofT.'x":'h_.o"

{a} (E?) (C) id) {8} I)ispui.e relating to the dujy_ of ¢u'sr:m&s_ ofi ~ _ any goods, The uaiue of the -..._goods'-._ AV.;m,rfpo§es of assessjmeni.

A dispute as~lo:"i'h.e5_cZa;3s§j"i:;iL:io'n of goods. Whether i"hose..goods._cufe "e"c:.uef:eo:"'.by an exemption no:sgfjic;;:,z.:oVn 9% 'n:i1_:." "

"i:{»f1:1i;%i"he}7'fV Vf,'7'1t:;"§j;VéC"llL£€ '._céfVV'Qoods «for the purposes of '(1sSe.9sinVe'nj, ~..§s*-.._r--equired to be increased or decreased. V WI1e£}ier'v~--«wf':ar' is imported or exported is goods fcfz. CEIETCZCES CIJSIOITIS dug.
x T é.L?;.*.U'F1'om the aforesaid [email protected], it is ciear that an eiég'-.d'ez'. fipassed by {he Appellaie Tribunai :°eEat1':"1g io the '"-.d,€f'.é:r'n1ina.t§on of any mxesiion having relation to ihe mie of E 53/ duty" of customss or to the value of goods for the ptwptessee of asssessmem. lies to the SLIpI'€;'3.I11f3 Coz,.z;rt under Seetieti Egf the Act: and not to the High CoL'1r'"i'. under Seetioza. L.
43. The ir:t.ez";t',io:1 behjinci '{',h.it-3bift,;E"{3E2.'ti.iQI.}'_ e:f'jairi$1di{:tio'r} between the Apex Court and tJo1.1_ft be that more often than not, e;1<1j;_decisitofine.:o'ou:'th:_ese «eat'o':'eseid aspects not only affects the iiatefeet. who are parties thereto,4.::1':3-'gt. .th'et'":'..n;eiziVot;ecturers of those products a country governed by Parlianientary 1e'g.isV1;{t§toriabeeause of the territorial bifurcation in formixlg etaiites ar1d"'beee.huse of the divergent opinion which is possible", the eLis.tVoirr1's dttty payable wo'uI<:1 vary from place to bfillg uniiomaity in the ievy of customs duty t';17:,1'o«z;;1gI :o=.,1:i;-«._tI;se'>.e'ount.1"y and eoneequentiy to see that the eoL121't4.:y'eV__$111.1;fiee is not e.ffeeted, the Pariiamerit has Vested the A jtzijisdietiozi to decide the disputes with the Apex Court. 5§'E;e'.refoi"et W6 see 8; duty pohey un<:IerE1'nf£r1g this; 'eii1,1.r:eatio;*: of juriedietiozz taetweem the f':pe:>< Cet.1r°t and the E-iigh Cotirte 5 Ea / 51?;/' /'
5.} All other mat:E',e;*.s otxhez" ihan what" is set out e11jev.€€';*. ir.?T§1ieF1 reiates to 'Lhe indivieluai i:11poriez's 0;: exp0rters.--;£r1d .:3J1'véiis15E;:stes based on assessment orders VVhiCh;h£.1V.€ atttaineei--VZ,iEn$i}i.tyV. such. as the benefits to which they are eiiiitied 1.0;" z"e£"1,1r;éis3,T"d:uty drawbacks, rebates, em,' w}1..icth i"ei;n';.e_ is .p;i1*tieui9.r marxufaemrer taiis with__i:1 the jV'L'1.r:§s:i£c:ti_en sf Courts. ON FACTS M
44. duty free material unde1'7.vDE_ECx ('wf£1:..Actua1 User Condition). 11 is not m dispute'A1:hs;1tes the fuifilled the export ob1ig3.tior1 c0n1pi'efe1ya 'V assessee has not diverted the imported gnieiefisii' of said All the material iE"I1pOl'tEéd were put is use K'EE£e§g\,xre:fev*'eiiswed £9 impart 2% in excess of their acme} req2;xirerr1*en1i' to pmvide for wastage. The excess material in fact had 'been utiiizaed esmpietely because of efficient utiiiz-aiien " sf.._£,he raw rziexieriazi. The xxfzzsézxge was iess. They (teased v_1_*%1a1nLt§'aei1:r§ng ilhfl'. pagers and the said material became E 2/ ngiiaxld whether the ievy ef duty in.'Leres{ and p:=::1alt'y :15 Iegai or ::/ 52 abssoieie. filerefore the said L:'m,15se:d rz1e;i".e:"ia1 had b6€;i'1'«..Written off in their books of acc0u'I11;8. They had COH]:j;}f§€§:i'..X?§7ii'h_the Conditions siipulated in notification 30/97~C1,1S'L{' 199?' IE: is E_EI1dE'.'I" these Cireumsta;iC€:$ .%i2t"€5ug1f1 ''._t'hu€' . ' ad3'udicating aE,:i'.h.c}riI;y a:1r:1 the i'§.§t$1 zgppéllaige =a€;:thTc1f'i-ty"*have held that the assessee has to; pay Cusit;-rns d1;+{y. :a§ni0uij1t:i'1'1g§'U3» Rs.96,1.'.?',4~98m0O with interest :ha{," m;der._h;;d"~%§é'en [up held by the Commissioner of C1,1stQ_:fi?:--:»,V_tI"1.r:: I'fib::fia1 héld that the assesses has not vioiétéd tffle Cofiduivtions of the notification, they had Cdrq'p1e?._€*Ej3{»' diSCf;a:ged their obiigation and th:;refo~ré €i*;cre; >r1oj1"ia.bi1iiy on the part of the assessee to pay any' ::L£s4;0rI1's: d'L1:ty...':"'in£eV£"est and penalty. It is iliat order whigh "1'S, Ch€1H€'fl.g(§d in {his appaal.
'- ig iiE¥;='a{:" {mm 'dim questiens af law "framed at the igiziié'::3.f*aQ;:i£'s$§1i>.n; this Court is caliied upon to decide whether i:'1f§"3' §L,tZ31."}f3i_1.,.';'5' cenditions 3:' the notification No.30/O9wC'us'L dated» v1"(};_~O4w.I99'? has been c:om_p£ied with by the assrzrsgee G2' not n;1aaii:3.tai:1abie before this Co'L1r°é',. The appeal} is io be 53 not and whet'.he§: the; "£'r1€bi,.:'r1a§ was _jL1stifie«:i in the levy of duty, intezest and penahy'?
46, A11 these questions reiate to Cif3~{:CfI}T:1i'i'1aT'i£::::I}. of fate» of duty Qayabie, €I1tifi8i1'1€I1f. of e):;e'113p.t;'0f1'1'Lu'§déi'. fIo'tiefiCs§Je.ioiL ' They' have to be decided by t}1e4__Ape;$<" .Co';1rt V130 preferred under Section 13OAE3ogoo1':1ot bf5}"ih:eeE{{igH':§Court: in an appeal preferred unde:4___S~ecti:_§i1 Act." iherefore the ieamed Counsei for the ;Le'Ts'es$eeV eonier1d1'r1.g that this appeai preI'erfed 'ivy =:i:11e Refifeiiueflihallengmg the order passe<;i._by_ theVfappveilegfee._i'1*iburia1 holding that the assessee is not 1ia1:>'1«e.. 1.oe pay V. duty, interest and penalty and settigig aside the_V1Ve{ry of duty and demand notice issued by the 'V not maimainable before this Court.
"_4?: .4T}:1€i'§"3i'OE'€, we are of the Considered opi'r1'ior1 thai LE6"§'rese.f1:i:'i_;§3pea1 prei7e1"red under' Section 130 of the Act is §'%éi,»e'/ E4 prezferred $0 the SL1p;°eJ:'ae Coufi. undgr Sectien 130w§§'.G'{}_.A{tE. AcCo1"ding1y, {I16 appeai is disnlisseéd. No Costs.